The Connected Business of Insurance
February 06, 2019
IVANS Index is a data-driven report of current conditions and trends for premium renewal rate change of the most placed commercial lines of business in the insurance industry. Data collected in the IVANS Index enables insurers to determine competitive rates and the most profitable lines of business for investment. To learn more about IVANS Index, read IVANS Index: Industry Insights to Help You Run Your Business Better.
Downward Trend in Premium Renewal Rate Change Average Across Nearly All Lines of Business
The latest IVANS Index results for January 2019 show that insurance industry premium renewal rates experienced a negative change across the majority of commercial lines, except Commercial Auto and Workers’ Compensation, which experienced a positive uptick, and Business Owners Policy which remained flat. Compared to the year prior, average premium renewal increased across all lines of business except Workers Compensation.
Key findings from the January 2019 results include:
- Commercial Auto: 4.57%, up from 4.51% in December.
- BOP: 4.23%, consistent from the month prior.
- General Liability: 1.16%, down from 2.23% the last month.
- Commercial Property: 3.74%, down from 3.95% at the end of December.
- Umbrella: 2.17%, down from 2.29% the month prior.
- Workers’ Compensation: -1.04%, up from -2.66% last month.
January’s IVANS Index figures show that most commercial product lines saw a slight downturn as compared to December 2018. As we begin 2019, IVANS Index continues to be utilized by agents to gain greater insights for better advice to clients during renewal periods and by insurers to support pricing strategies.
Analyzing more than 120 million data transactions, the IVANS Index premium renewal rate change measures the premium difference year over year for a single consistent policy. Inclusive of more than 32,000 agencies and 400 insurers and MGAs, the IVANS Index is reflective of the premium rate change trends being experienced by all agencies and insurers across the U.S. insurance market.
For further insights into premium renewal rate change across the industry, download the Q4 2018 IVANS Index report now >
Brian Wood, Vice President of Data Products Group for IVANS, develops innovative and data-driven applications, tools and services for the insurance industry. Prior to this position, he co-founded EvoSure, which was acquired by Applied in Sept 2015. Brian spent 10 years with Marsh & McLennan as Senior Vice President of Strategy and Business Analysis where he developed global insurance distribution platforms. Brian began his career in insurance building the first company to bind insurance online, insuranceOrder.com (a Trilogy company) which was acquired by Marsh & McLennan in 2001.